IDEAS home Printed from https://ideas.repec.org/p/bdr/borrec/174.html
   My bibliography  Save this paper

Colombia's Public Finance in the 1990s: A Decade of Reforms, Fiscal Imbalance and Debt

Author

Listed:
  • Ignacio Lozano

    ()

Abstract

At the beginning of the nineties, a diversity of economic reforms were designed and implemented to reduce the size of the country's public sector with the objective of making it more efficient. Despite the reforms, ten years later, the Colombian public sector is 80% larger, and the financial sustainability of the Government presents serious problems. In 1999, Colombia's chief indicator of economic growt (GDP) was -4,3% and the unemployment rate reached 20% Such an evident dwindling of the economic activity has been accompanied rate reached 20%. Such an evident dwindling of the economic activity has been accompanied with imbalances in the macroeconomic accounts, particulary in the public sector. This paper provides a general description of Colombia's economic trends in the last few years, closely examining the factors which have undermined the country's public finances. Section II contains an overview of the fiscal imbalances registered as of the 1960s, and their relationship with both the real business cycle and the tax policy. Section III includes a synthesis of the main economic reforms introduced in the early nineties, and compares the size of the Colombian public sector with those of several neighboring countries. Section IV describes the key issues involved in the country's recent fiscal imbalance and, Section V, analyses the dynamics of the public debt and the question of its sustainability. The closing section outlines the policies for economic adjustment and reactivation currently debated in Colombia.

Suggested Citation

  • Ignacio Lozano, 2001. "Colombia's Public Finance in the 1990s: A Decade of Reforms, Fiscal Imbalance and Debt," Borradores de Economia 174, Banco de la Republica de Colombia.
  • Handle: RePEc:bdr:borrec:174
    as

    Download full text from publisher

    File URL: http://www.banrep.gov.co/docum/ftp/borra174.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Fischer, Stanley & Easterly, William, 1990. "The Economic of the Government Budget Constraint," World Bank Research Observer, World Bank Group, vol. 5(2), pages 127-142, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ignacio Lozano, 2009. "Budget Deficit, Money Growth and Inflation: Evidence from the Colombian case," Money Affairs, Centro de Estudios Monetarios Latinoamericanos, vol. 0(1), pages 65-95, January-J.
    2. Juan David Barón R. & Adolfo Meisel R., 2003. "La descentralización y las disparidades económicas regionales en Colombia en la década de 1990," COYUNTURA ECONÓMICA, FEDESARROLLO, September.
    3. Joaquín Viloria De La Hoz, 2001. "Descentralización en el Caribe colombiano: las finanzas departamentales en los noventas," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL Y URBANA 002283, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
    4. Joaquín Mauricio Zuleta Arango & Lisandro López Marín & Daniel Sánchez García, 2010. "Descentralización Y Disparidades Económicas Territoriales En Colombia (1990-2005)," Observatorio de la Economía Latinoamericana, Grupo Eumed.net (Universidad de Málaga), issue 130, April.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdr:borrec:174. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Clorith Angélica Bahos Olivera). General contact details of provider: http://edirc.repec.org/data/brcgvco.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.